Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

[gravytrain]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Hi,

Thanks a lot for the quick reply! With regard to dates - I have already sent them a letter using the useful template provided on this site, and they have replied to confirm the outstanding amounts. Is the agreement 'terminated' already, or does this only happen when the car is collected?

The agreement is terminated once the notice you have given ends, this is when your last contractual payment expires.

You must make sure that everything is documented, and kept just in case. Also as said earlier on here i would take some photos of the car along with something that can identify the time they were taken, like a newspaper, they may come back with a bill for bodywork , it is nice to have something to throw at them to show that the car was in reasonable condition when you returned it.

[z0mbee]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

It has to be remembered that on a conditional sale agreement or HP, the vehicle does not belong to the debtor at all untill the last payment.
Why would you pay £80 for someone to collect their own vehicle?

You agree to drop the car in, if it is only within a reasonable distance, if it is any more than say 20 mins away, I would insist that they made other arrangements. If they are trying to use this as a sticking point in order to stop the VT, send them a letter stating your position and record delivery, notify the TS and let them know.

Inform them the that the termination of agreement is to take place xx date (at least two weeks notice) and inform them that you will be charging storage from that date at xx per day.

Hi,

Thanks a lot for the quick reply! With regard to dates - I have already sent them a letter using the useful template provided on this site, and they have replied to confirm the outstanding amounts. Is the agreement 'terminated' already, or does this only happen when the car is collected?

[gravytrain]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

It has to be remembered that on a conditional sale agreement or HP, the vehicle does not belong to the debtor at all untill the last payment.
Why would you pay £80 for someone to collect their own vehicle?

You agree to drop the car in, if it is only within a reasonable distance, if it is any more than say 20 mins away, I would insist that they made other arrangements. If they are trying to use this as a sticking point in order to stop the VT, send them a letter stating your position and record delivery, notify the TS and let them know.

Inform them the that the termination of agreement is to take place xx date (at least two weeks notice) and inform them that you will be charging storage from that date at xx per day.

[z0mbee]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Hi all,

I am in the process of VTing my car that is with Advantage Finance. The settlement figure seems ok, but the nearest drop-off location they can offer is 35 miles (and an hour's drive) away. Is this 'reasonable'? They say they can collect it, but for an £80 charge. I am seeing conflicting information as to whether or not they can charge to collect, so would be very grateful if someone could put me right.

Thanks,

Gary

[gravytrain]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Here's the info they've come up with, what do you think?


As requested please find attached an up to date statement of your account to confirm payments made to date.

You will see from this statement that your monthly payment due on the 01st May 2010 returned unpaid (taken on the 04th due to weekend bank holiday) together with the automatic resubmission requested in the 11th May 2010. You then called on the 17th May 2010 and made a payment of £250.00 (£22.21 short of your normal monthly instalment of £272.21) with a plan to clear the outstanding arrears (plus charges incurred of £30) on top of your normal monthly payment due on the 01st June 2010. The arranged payment failed due to the cancellation of your direct debit.

No not enough to default and terminate your account, nowhere near. They could not terminate the account anyway without sending you a section 87 notice,

The notice would have had to state precisely how much you had to pay to remedy any shortfall on your payments, and give you the opportunity to remedy,

Generally these are sent out after a minimum of two moths arrears. The account cannot be terminated without this notice being sent first.

[dingobingo]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Here's the info they've come up with, what do you think?


As requested please find attached an up to date statement of your account to confirm payments made to date.

You will see from this statement that your monthly payment due on the 01st May 2010 returned unpaid (taken on the 04th due to weekend bank holiday) together with the automatic resubmission requested in the 11th May 2010. You then called on the 17th May 2010 and made a payment of £250.00 (£22.21 short of your normal monthly instalment of £272.21) with a plan to clear the outstanding arrears (plus charges incurred of £30) on top of your normal monthly payment due on the 01st June 2010. The arranged payment failed due to the cancellation of your direct debit.

[gravytrain]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

You need to, impress upon them that you are terminating under section 99 and as far as you are concerned the agreement was terminated on the date in your letter.
If they are saying that they terminated the agreement on default earlier, you require a copy of the default notice issued under section 87 of the consumer credit act and the termination notice.

Also an explanation of why the agreement was allowed to run, and why subsequent payments were not used to repay default sums and the arrears carried forward, as is normal practice.

[gravytrain]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

So in other words they stand to make over 2k if they don't accept the VT,

In order for the earlier termination to be valid the default notice would have to have been issued before the agreement was terminated and it would have to state the amount of arrears, if it was only £22 it would make no sense, as this would not be a repudiatory breach it would just be arrears.

[dingobingo]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

£3700.
They say the £22 is part of a an installment arrangement made earlier in the year to cover some other arrears. Which doesn't make sense. I'f I'd default earlier in the year on a single monthly payment, why not issue the default for that. I dont recall making any installment arrangement and why have they just sent me paperwork for this £22. I'll call back and ask what the £22 was for and to send me paperwork for that.

[gravytrain]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

As a matter of interest , what is the book trade in price for your car currently ?

[gravytrain]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

If your monthly payments were £300 you were not even one month in arrears they cannot terminate your agreement for £22.

[dingobingo]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Annoyingly the default notice deadline was 3rd May 2010. I apparently called them and made payment on the 5th.

[dingobingo]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Hi,

They say they have sent me the required notices and payment was not made within the default deadline thus they then cancelled the agreement and wrote to me. They're going to send me copies of the letters they sent me. They acknowledge receipt of my VT request and state I can't as I have lost the right to do so.

I tried to chase up the VT I sent but they're 100% sure I have no right to one now.

[gravytrain]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

I am saying that they cannot terminate the agreement on a missed payment of £22, in any case if you had made the next contractual payment the £22 would have been paid , so you would just have £22 continual arrears.

In order to terminate an agreement under the CCA they have to send you first notice of arrears within two moths of the default and then give you 14 says to remedy, anything you pay during this period would remedy the default.
I suspect that this is a device they are attempting to use to get around the VT issue, but it would not wash in court, in order for them to terminate on default you would have had to commit a repudiatory(severe) breach of contract, £22 arrears would not qualify.

You need to chase up the VT you have sent , did you keep copies or send them recorded ? remind them that they have had a termination notice under section 99 and enclose a copy , ask for then to either collect the vehicle or arrange a local drop off point

[dingobingo]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

I have sent the VT template from this thread three times. First time the address on their agreement is no longer in use so it bounced. Second and third got through though.

I moved house and picked up the mail irregularly (still owned old address) so it's possible they sent me those notices. But are you saying that even if they did send those docs and did cancel the agreement they can't continue to collect the monthly payment?